NVDA shares are losing momentum after a powerful upward reaction this morning. It seems that as it approaches its resistance area, it is becoming difficult for NVDA to maintain its upward trajectory.
We had a good reaction near the Fibonacci retracements, which, as we warned in our last public study, was our main area of support. Now the price is trying to recover, but there are still some challenges ahead. The link to our previous analysis is below this post, as usual.
It's interesting to note that despite losing momentum, the price could still seek out the $487.61 region, a secondary resistance and previous top that can be seen on the hourly chart:
At the moment, there is no clear sign of a bearish reversal, but we should remain vigilant as the price is finding it difficult to break through the resistance of its Ascending Channel, as evidenced by the purple lines.
A correction down to the 21 EMA is plausible, but if the price loses this support, then we could see NVDA near the support of its channel again.
So, in the short term, it's all about the Ascending Channel, and in which direction there will be a breakout, as well as the 21 EMA. In the medium term, we should focus on the Fibonacci retracements, and the resistance at $487.
I must admit that I would like to see the price at $487 again, since that point has been a personal target for me since the first buy signal at $469: Ignition Bar + above the support of the ascending channel + breaking a pivot point + breaking the 21 ema on the 1h chart = Clear buy signal (to me, at least). However, depending on how the price reacts today, maybe the bullish thesis will be thwarted.
I’ll keep you updated on this, so remember to like this idea, and follow me for more analysis like this.
All the best,
Nathan,
We had a good reaction near the Fibonacci retracements, which, as we warned in our last public study, was our main area of support. Now the price is trying to recover, but there are still some challenges ahead. The link to our previous analysis is below this post, as usual.
It's interesting to note that despite losing momentum, the price could still seek out the $487.61 region, a secondary resistance and previous top that can be seen on the hourly chart:
At the moment, there is no clear sign of a bearish reversal, but we should remain vigilant as the price is finding it difficult to break through the resistance of its Ascending Channel, as evidenced by the purple lines.
A correction down to the 21 EMA is plausible, but if the price loses this support, then we could see NVDA near the support of its channel again.
So, in the short term, it's all about the Ascending Channel, and in which direction there will be a breakout, as well as the 21 EMA. In the medium term, we should focus on the Fibonacci retracements, and the resistance at $487.
I must admit that I would like to see the price at $487 again, since that point has been a personal target for me since the first buy signal at $469: Ignition Bar + above the support of the ascending channel + breaking a pivot point + breaking the 21 ema on the 1h chart = Clear buy signal (to me, at least). However, depending on how the price reacts today, maybe the bullish thesis will be thwarted.
I’ll keep you updated on this, so remember to like this idea, and follow me for more analysis like this.
All the best,
Nathan,
Comment:
The ATH area acted as a resistance level, as expected, and we now see NVDA back at the $476 line, which is a support line we identified a long time ago, as seen in the previous charts of this analysis.
It's important to see the price reacting above this support, but if NVDA loses it in the next few days, we could see a sharper correction to $460, close to the first Fibonacci retracement at 38.2%.
It's important to see the price reacting above this support, but if NVDA loses it in the next few days, we could see a sharper correction to $460, close to the first Fibonacci retracement at 38.2%.
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We see that in the hourly chart above the price has broken through the resistance of the ascending channel, a clear indicator of a healthy uptrend, while the 21 EMA has served as a reliable support point - and still is. What’s more, the previous resistance of its ascending channel is now acting as a support level too, near the 21 EMA, following the Principle of Polarity (previous support levels are supposed to act as future resistance levels and vice-versa).
However, although there is still no sign of a top in NVDA, we need to remain vigilant as we have reached a critical point on the daily chart, a strong resistance in the area of the historical high.
Any sign of a top here could start a correction in the medium term, and the 21 EMA on the daily chart could become our next support point.